RadioShack's stock has passed a milestone -- a bad one.
The company's stock price dipped below $1 on Friday. In late morning trading, the stock was trading at $0.93. RadioShack's market cap is now $92.7 million, compared with $9.9 billion for rival Best Buy.
[seealso slug="radioshack-over-and-out"]
The $1 mark is more than just a psychological barrier; the New York Stock Exchange can delist the stock. As USA Today's Matt Kranz noted in a 2009 column, "falling below a $1 a share is normally the beginning of the end for many stocks." The NYSE normally launches a review when a stock drops into the single digits.
RadioShack could conceivably engineer a reverse stock split to bring its price back up again. If NYSE delists the stock, it can still trade on the OTC Bulletin Board or Pink Sheets. RadioShack reps and NYSE reps could not be reached for comment.
Earlier this month, RadioShack reported a $98.3 million loss and a 14% drop in revenues, marking the ninth consecutive quarter that sales fell at the chain. In response, B. Riley & Co. analyst Scott Tilghman cut RadioShack's target price to $0.